Pet ownership is among the topics in the crosshairs of the NSW Government’s strata law reforms. Photo: Michelle Kroll.
Fees imposed by strata schemes in NSW to keep or apply to keep a pet are set to be banned if the NSW Government’s suite of strata reforms pass parliament this week.
The Minns Government labelled the fees as costly, unnecessary and unreasonable and said owners already paid levies to finance their strata scheme and the cost of insurance.
The reforms are part of the NSW Government’s first phase of strata law reforms before parliament this week, which are intended to make the state’s strata system fairer and more transparent.
“We’re working to get more homes built, but we’re also making sure we’ve got the right systems and laws to manage them,” Fair Trading and Better Regulation Minister Anoulack Chanthivong said.
“There are currently over 85,000 strata schemes in NSW compared to just 50,000 in 1996, so getting this right will be critical. As the number of strata schemes in the state has grown rapidly, the rules haven’t kept pace.”
The government criticised the previous government for not acting on a 2021 review of strata laws in the context of around 1000 strata schemes being registered each year for the past decade.
Strata laws govern community living arrangements, like apartment buildings or townhouses, with owners corporations in charge of making decisions on repairs, maintenance or collective sales.
The new legislation would also alter the collective sale and renewal process by requiring owners to disclose conflicts of interest and allowing courts to award costs against those determined to be acting unreasonably. The government said this would help prevent strata residents hoping to sell their buildings from getting stuck in courts for years because another developer owns several apartments.
“We are now seeing safeguards that were intended to support owners in renewing their strata schemes being used against them,” Customer Service and Digital Government Minister Jihad Dib said.
“This reform will help restore balance, improve transparency and boost protections for owners in the collective sale and redevelopment process.”
Other proposed changes include expanding rules to require owners corporations to get a second opinion when the bill for work is more than $30,000 to ensure competitive quotes are obtained.
Under current laws only large strata schemes are required to obtain two quotes for good and services requiring significant expenditure, but this change applies the rules to all strata schemes.
NSW Fair Trading would also gain the ability to ask the NSW Civil and Administrative Tribunal to appoint a compulsory managing agent to help manage dysfunctional strata schemes.
While owners and certain other people can already apply to the Tribunal, these changes are intended to protect owners where a strata scheme is not undertaking its core duties.
The NSW Government also announced the state’s Property Services Commissioner John Minns, whose role was created by the previous coalition government, would have his responsibilities expanded.
Currently, the Property Services Commissioner is charged with setting professional development requirements for agents and setting the rules for the supervision of agency businesses.
But under his new title of Strata and Property Services Commissioner, Mr Minns would be responsible for oversight and reform across the whole sector, with strata at the centre.
Strata Community Association president Chris Duggan said the announcement was a reflection of the government’s commitment to the strata sector and consumers.
“Strata is the engine room for solving the housing supply crisis and having an experienced and engaged commissioner such as John is welcome news to the industry,” he said. “John has excelled in his role as property services commissioner through active industry and consumer engagement and advocacy and a deep understanding of the challenges and opportunities presented to community living.”
